Gujarat unhappy with high tariffs at recent solar auction

Winning tariffs by Softbank backed SB Eenergy, Finland’s Fortum and French utility Engie in the latest solar auction in Gujarat are much higher than expected, prompting the state to consider whether the auction should be cancelled, officials said.

The 700 MW auction held in December was won entirely by foreign developers. SB Energy got 250 MW at a price of Rs 2.84 per unit, while Fortum and Engie got 250 MW and 200 MW, respectively, both at Rs 2.89 per unit.

In the previous auction held by the Gujarat Urja Vikas Nigam Ltd (GUVNL) in September 2018, the lowest tariff had been Rs 2.44 per unit, and the Gujarat government is unhappy over the substantial rise within three months.

“We may not agree with the tariff. It seems to be on the higher side,” said a senior state government official involved in the matter. “A decision will soon be taken. We are looking at options. We were expecting a much lower rate.” Read more